Addressing Climate Financial Risk Act of 2026

This bill establishes two new committees under the Financial Stability Oversight Council to address climate-related risks in the financial system. It requires annual reports assessing climate risks' impact on financial stability, updates supervisory guidance for banks with over $50 billion in assets to include climate risks, and mandates a Federal Insurance Office report on homeowners insurance data to evaluate climate impacts. The law directly affects major financial institutions, federal regulators (like the Fed and SEC), state insurance commissioners, and the insurance sector. Key mechanisms include creating a Climate Financial Risk Committee for coordination, an Advisory Committee with climate and financial experts (excluding oil/gas industry), and requiring updated risk management practices for large financial firms.